Projects
Projects: Projects for Investigator |
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| Reference Number | NIA_WWU_026 | |
| Title | Bridgend Future Modelling - Phase 2 - Willingness to Pay | |
| Status | Completed | |
| Energy Categories | Fossil Fuels: Oil Gas and Coal(Oil and Gas, Other oil and gas) 50%; Fossil Fuels: Oil Gas and Coal(Oil and Gas, Refining, transport and storage of oil and gas) 50%; |
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| Research Types | Applied Research and Development 100% | |
| Science and Technology Fields | SOCIAL SCIENCES (Economics and Econometrics) 25%; SOCIAL SCIENCES (Sociology) 50%; ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering) 25%; |
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| UKERC Cross Cutting Characterisation | Not Cross-cutting 100% | |
| Principal Investigator |
Project Contact No email address given Wales and West Utilities |
|
| Award Type | Network Innovation Allowance | |
| Funding Source | Ofgem | |
| Start Date | 01 June 2015 | |
| End Date | 01 February 2015 | |
| Duration | 2 months | |
| Total Grant Value | £30,720 | |
| Industrial Sectors | Technical Consultancy | |
| Region | Wales | |
| Programme | Network Innovation Allowance | |
| Investigators | Principal Investigator | Project Contact , Wales and West Utilities (100.000%) |
| Web Site | http://www.smarternetworks.org/project/NIA_WWU_026 |
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| Objectives | To confirm the likely impact of the introduction of alternative forms of energy on the gas distribution network, by understanding the level of uptake over time. Broken down as: Produce model to assess what incentives would be needed and over what time periodEstablish an investment appraisal periodAssess the impact on the customer billResearch and confirm customer behaviour in previous examples and therefore inform what ranges and period of payback would make people switch to alternative forms of energy supply A financial model and report that evidences the likely uptake of alternative forms of energy and therefore quantifies the impact on gas distribution in the future; to include initial uptake after installation and rate of uptake over time. | |
| Abstract | The future of gas debate has become critical in deciding future investment policy and asset lifespans and as such is impacting investment decisions and in future, will impact negotiations for funding allowances within the regulated timelines (Mid-point being 2017 and GD2 being post 2021). More recently, the Department of Energy & Climate Change (DECC) have launched a study into the viability of investing in iron mains and the Gas Distribution Network Operators Gas Futures group has evaluated top down "WHAT WILL THE GAS DISTRIBUTION NETWORK LOOK LIKE IN 2050?", but this doesn’t give insight into how gas will be used at a dwelling level and hence which iron mains will be needed in future. As a result of phase 1, it is apparent that one of the key factors in this view of the future use of gas is the willingness of the public to pay for new alternative forms of energy for their homes and businesses. This willingness to pay impacts the uptake of new alternative forms of energy. There is currently very little evidence to assess this figure and this could range from 1% to 100%. It is assumed that the cost of switching over from gas to an alternative energy source would be dependent on the initial and ongoing costs, however, there is little evidence to back this up and quantifying this will also inform the next phase of the project which looks at the necessary policy changes and probable incentives required. To determine the certainty of gas use, the uptake of alternative energy sources need to be known or evaluated. The current WWU infill process gives good insight into the likelihood of uptake of an alternative fuel source. Infills are extensions of the existing gas network into areas previously without gas. It is proposed to use this experience of infills and conversion to other energy sources to build a picture of the likely impact on the gas distribution requirements. The cost paid by the end user includes a contribution to the installation of a gas main, the connection to the gas main and the conversion of the boiler. In this way the costs and uptake rate of infills is a good comparator. Infills carried out previously have also shown that larger schemes are more unlikely to progress, with smaller schemes being completed but only in small numbers. WWU have experienced an increase over the past 4 years due to the Fuel Poor Network Extension scheme, and part of this study will need to look at the change in uptake with an incentive. In many cases the payback period of changing to an alternative energy source will be the determining factor for the end user to pay the initial cost of switching. This study is to confirm; current payback periods for the different alternative fuels, willingness to pay over a period of time, and the likely uptake as a result. It is proposed to research by carrying out an extensive document review, followed by the building of a financial model and report. This bottom up/statistical analysis will assist all GDNs address the energy trilemma that is currently being discussed. This considers;Reliability, Availability & SustainabilityBest Cost for all StakeholdersEnvironmentally Considerate Energy ProvisionNote : Project Documents may be available via the ENA Smarter Networks Portal using the Website link above | |
| Publications | (none) |
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| Final Report | (none) |
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| Added to Database | 09/08/18 | |
